...

Kazakhstan continues with measures to support oil and gas sector during COVID-19

Oil&Gas Materials 24 December 2020 20:46 (UTC +04:00)
Kazakhstan continues with measures to support oil and gas sector during COVID-19

BAKU, Azerbaijan, Dec. 24

By Nargiz Sadikhova - Trend:

Kazakhstan adopted a list of measures to support the country's energy sector during the global pandemic caused by COVID-19, the Kazakh Ministry of Energy told Trend on Dec. 24.

So, a decision was made for energy producing organizations using renewable energy sources and having valid purchase agreements with the settlement and financial center, to envisage the extension of the term for submitting a copy of the notification about the beginning of construction and installation work and (or) a copy of the acceptance certificate of the facility for the use of renewable energy sources for a period not exceeding one calendar year.

One of the negative consequences of COVID-19 was the closure of borders, which also made it difficult to attract foreign specialists to carry out construction and installation work. The dates of launching the commissioning work have shifted.

At the same time, the work is underway to establish the process of issuing the permits for foreign specialists and the supply of equipment with the interdepartmental commission on prevention of the emergence and spread of coronavirus infection in the Republic of Kazakhstan and authorized state bodies of Kazakhstan.

1) Tax legislation envisages the following measures to maintain the financial and economic stability of subsoil users in case of unfavorable conditions in the world oil market:

- connection between the rental tax and the oil price

- connection between the export customs duty and the oil price

- the rate of mineral extraction tax on oil for fields classified as low-profit.

Moreover, a moratorium was introduced on preventive control of controlled entities and visits of subsoil users until the end of 2020 (except for permits and unscheduled procedures) by authorized bodies in the hydrocarbon fields and the production of oil products, as well as by the competent structure.

2) The Ministry of Energy was instructed to work out the possibility of postponing the deadlines for the fulfillment of contractual and licensing obligations on applications from subsoil users for 2020, as well as the work programs for further years without imposing penalties.

3) To support domestic oil refining, the government of the Republic of Kazakhstan has taken a number of the following measures:

- cancellation of the ban on the export of oil products by vehicles outside the Republic of Kazakhstan;

- cancellation of the ban on supplying oil products outside the countries of the Customs Union;

- exemption of producers of excisable goods, namely, gasoline and diesel fuel sold for export, from the payment of excise taxes;

- introduction of a ban on railway supplies of gasoline and diesel fuel from the Russian Federation to the Republic of Kazakhstan;

- zeroing the rates of export customs duties on oil products, including petrol, diesel fuel and fuel oil.

A working meeting of the Council of Foreign Investors under the president of the Republic of Kazakhstan was held in the format of a video conference under the chairmanship of the president on November 18, 2020.

During the meeting, the president instructed to create a working group, within which the proposals must be made to increase the competitiveness and investment attractiveness of the oil and gas industry.

Tags:
Latest

Latest